Leasing and Property Management Practice Question
Question
A listing agent notices a potential compliance issue involving net lease. Which statement is the most accurate exam answer? (Item 65)
Answer choices
- A. Recognize tenant responsibility for specified property expenses.
- B. It applies only to commercial property and never to residential transactions.
- C. It is controlled only by local custom rather than by law, contract, or professional duty.
- D. It is valid only when the buyer pays cash and no lender is involved.
Correct Answer
A. Recognize tenant responsibility for specified property expenses.
Explanation
The correct answer is A because net lease requires candidates to recognize tenant responsibility for specified property expenses. The other options overstate the effect of custom, oral agreement, escrow, or independent salesperson action and do not reflect safe California exam practice.
Question details
- Difficulty: medium
- Domain: Leasing and Property Management
- Objective: net lease